Having A Local Bankruptcy Attorney Matters

Although bankruptcy is handled by federal district bankruptcy courts, there are important differences in bankruptcy filings from state to state. 

Bankruptcy filings are governed by the bankruptcy laws of the state in which they are filed.  For this reason, a Georgia bankruptcy will be very different from a California bankruptcy or a Connecticut bankruptcy. 

The most significant area of difference is in the laws pertaining to exemptions.  A bankruptcy in Georgia will allow an individual to protect up to $10,000 of equity in their residence, up to $5,000 in their household goods, and up to $3,500 in motor vehicles. 

If you were filing the same bankruptcy in Rhode Island, you would be able to protect $300,000 in home equity, $12,000 in motor vehicle equity, all clothing, $1,500 worth of tools used in the debtor’s profession and the library of a professional, and one burial plot. 

Those filing for bankruptcy in California would be able to claim homestead exemptions of $75,000 if they are living with other non-owner family members, up to $150,000 if they are older than 65 or disabled and up to $50,000 if the previous statuses do not apply. 

Because bankruptcy varies so much from state to state, it is highly recommended that you contact a qualified Georgia bankruptcy attorney to assist you with the process of filing a bankruptcy in the state of Georgia.  This professional will be knowledgeable in all aspects of bankruptcy law in Georgia and will be able to help you ensure that you protect as much of you assets as possible.

Filed under: Bankruptcy Information — Tags: , , — admin @ 8:25 am

Bankruptcy In Georgia Under The New Bankruptcy Law

Bankruptcy in Georgia is governed by the United States Bankruptcy Code.  These rules for Georgia bankruptcy were significantly altered by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). 

All bankruptcies filed after October 17, 2005 are subject to the provisions of the BAPCPA.  While it is no longer a recent change, these bankruptcy laws are often referred to as the “new” bankruptcy laws. 

The primary aim of these revisions is to make it more difficult to file a chapter 7 bankruptcy and to encourage more filers to choose to file a chapter 13 bankruptcy instead. 

Prior to the passage of this act, debtors could choose to file either chapter 7 or chapter 13 bankruptcy, but once the BAPCPA was passed, debtors seeking to file chapter 7 bankruptcy were required to satisfy specific income and asset requirements. 

To determine if these criteria are met, the BAPCPA requires that the debtor’s monthly income be compared to the median income of the state in which they are filing for bankruptcy.  If the debtor’s income falls below the state’s average, they will automatically qualify to file for a chapter 7 bankruptcy.  If the debtor’s monthly income exceeds this average, a “means test” is applied. 

To further evaluate the debtor’s financial situation, their current monthly income is compared to a list of allowed expenses.  These expenses are based on IRS approved deductions.  These are not the debtor’s actual expenses, but rather averages that the IRS has determined. 

Georgia bankruptcy law has been impacted by the changes that were enacted with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, as filing for bankruptcy is no longer a simple matter of completing a few forms, but instead requires complex formulas and exemptions. 

The best way to successfully navigate the additional requirements of the BAPCPA is by consulting a qualified Georgia bankruptcy attorney.

Filed under: Bankruptcy Information — Tags: , , , , — admin @ 8:55 am

Understanding Exemptions In An Atlanta Bankruptcy

Georgia bankruptcy laws include several provisions to enable bankruptcy filers to retain some amount of their property.  These are exemption laws, and they are in place to protect your property from seizure by the bankruptcy trustee or any of the creditors in your case.

There is an allowance of up to $10,000 for home equity, up to $5,000 worth of household goods, and up to $3,500 worth of equity in any motor vehicles.  The $5,000 allowable for household goods is doubled if a couple is filing for bankruptcy jointly.

In addition to the $5,000 allowance, no one item claimed under this provision should be more than $300 in value.  The best gauge of an item’s value is what you would be able to resell it for. You can check e-bay or the online classified site craigslist to determine at what price comparable items are selling.

For bankruptcy filers, one of the biggest areas of concern is often the impact that the bankruptcy will have on their retirement accounts.  In Atlanta, bankruptcy judges have upheld the decision that both 401K and pensions are exempt assets.  Often these accounts have penalties for early withdrawal and thus, it has been determined that including them in the debtor’s bankruptcy estate will not assist them in repaying their debts.

Georgia bankruptcy laws also allow some flexibility within you exempt assets.  Debtors may exempt up to $3,500 for their motor vehicle.  If a debtor only claims a portion of this exemption, they may apply the remainder to their homestead exemption.

The implications of Atlanta bankruptcy exemptions also differ depending on which chapter of bankruptcy you choose to file.  Some high value assets cannot be fully protected in a chapter 7 bankruptcy, while some unsecured debts will have to be repaid in a chapter 13 bankruptcy.

Filed under: Bankruptcy Information — Tags: , , — admin @ 8:31 am


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